Brimstone said:
A while back, the inquirer reported on Microsoft designing their own CPU. Rival Sun designed a Java-styled CPU with MAJC, and since then Microsoft has got the .net thing rolling. Why wouldn't Microsoft want a CPU tailored for the .net enviroment is what I've always asked myself. I doubt Microsoft is going to design a CPU from the ground up, but I could see them going to IBM and asking for them to take the POWER CPU design and customize it into something like MAJC, but optomized to run in a .net world.
And of course quite proprietary, but probably licenseable.
Still, I'm not sure I can fully understand why Microsoft would turn to IBM for their Xbox CPU(s).
In the Microsoft-Intel relationship, Microsoft is definitely in the stronger position. Windows boxen today are products of clerical use. Their grip on the market is mainly due to compatibility with various office and administrative software, making them difficult to replace in public and private administrations worldwide. It is hard to see Microsoft make any move that would threaten that position.
However, the architecture of these Wintel boxes aren't necessarily optimal in other market segments (or even for clerical use these days!). That much is also obvious. But up to this point, Microsoft has always offered software platforms that work nicely on Intel hardware. This was the case both with WindowsCE for PDAs, and their new Smartphone platform.
So why IBM for the Xbox2? I find it hard to believe that IBM could really offer
that much more in terms of the processing power/cost/power draw triad.
So why?
Was it only a political move to keep Intel in line, telling them in no uncertain terms who calls the shots in the market, without taking any risks in the traditional PC/light server spaces?
Or is it a play for higher stakes, to achieve a situation where Microsoft ultimately can control and rake in revenues from more tiers in the computing world, and from hardware and software both?
The threat of the latter is the justification for the first hypothesis, of course. But it isn't totally inconceivable. Microsoft has a virtual monopoly as it is - they can't increase revenues drastically without also drastically raising prices. But the pressure against the Microsoft tax is mounting, not least from the administrations that constitute their stronghold. Thus, to increase revenues, they have to look for new sources. Smartphones is an obvious market to pursue, but what other leads are they following?
If I still live by then, I'll read Ballmers memoirs with great interest.